THE UK Government’s white paper on the post-Brexit relationship between the UK and the European Union “offers little reassurance” for those worried about the impact it will have on our economy, according to the Scottish Government.

Fiona Hyslop, the Culture, Tourism and External Affairs Secretary, said: “Quite simply, these plans fall short and will harm our economy.

“As with the Chequers agreement, there is some evidence that the UK Government now realises the damage of leaving the EU, as well as the benefits that being in the EU, the single market and custom union has brought to the whole of the UK.

“Nevertheless, there is still a long way to go before those risks are mitigated.”

She said the Scottish Government had been consistently clear that the best way to protect Scotland’s interests and future growth was continued membership of the Single Market and Customs Union.

“While the paper provides an indication that the UK wants to participate in pan-EU programmes in areas such as science and research, there continue to be too many unknowns on issues such as whether the UK’s proposals can deliver continued use of the European Arrest Warrant and what they mean for the future migration of people,” said Hyslop.

“The UK Government has fallen short on employment rights and environmental protections and, instead of committing to matching EU standards, they are only promising not to fall behind the current position.

“There is still an opportunity in these final few months of negotiations to encourage the UK to adopt the only sensible position of remaining within the single market and the custom union and to put a stop to some of the damage that Brexit will do.

“The Scottish Government will continue to make that case and to argue for much greater engagement with the UK Government to ensure Scotland’s interests are protected.”

Business leaders welcomed more detail on the government’s plans but said there were still gaps that had to be filled, such as clarity on arrangements for migrant workers.

“The release of the much-anticipated White Paper, and subsequent statement by recently appointed Secretary of State Dominic Raab, has started to provide more of an understanding of what the future UK-EU relationship will look like,” said Liz Cameron, director and chief executive of Scottish Chambers of Commerce.

“We welcome the detail provided on the UK Government’s approach to mobility, including the statement of intent to operate a UK-EU Youth Mobility Scheme and visa-free travel for tourism and short-term business activity.

“However, with Scottish industries including hospitality, manufacturing, oil and gas and food processing benefiting from the pool of EU talent, we need urgent clarity on the longer-term arrangements for the recruitment of workers from EU and non-EU countries.

“The UK Government must adopt pace and momentum: business wants to see this White Paper evolve swiftly into an action plan, giving firms the time to make critical investment and planning decisions.

“Unanswered questions still remain, and business communities across Scotland will need answers on the practical realities of the new arrangements.

“UK and European leaders must play their part and approach these negotiations with an open mind, and fully engage with businesses when designing the new economic arrangements between the UK and EU.”

Employers’ organisation, the CBI, said the White Paper reflected much of the evidence business had been highlighting since the referendum. Carolyn Fairbairn, its director-general, said the direction was welcome, and: “Protecting jobs and investment now and in future should be the guiding star for both sets of negotiators.

“Many of the intentions are reassuring. Seeking a free trade area for goods and a common rule book shows the Prime Minister has put pragmatism before politics and should be applauded.

“Businesses on both sides have been asking for frictionless trade between the UK and EU, and shared rules could go a long way towards delivering that. It is now the EU’s turn to put economics before ideology on these proposals.”

She added: “But there are gaps in these proposals and more detail is needed on EU VAT, some services sectors and the new customs system. It will be a make or break summer. It’s vitally important UK negotiators get their heads down and work with businesses to grapple with the detail and get it right. With three months left to go, it is now a race against time. The EU must now engage constructively and flexibly, as must politicians from all UK parties ... There’s not a day to lose.”